MTM 10 Year Treasury Yield from August 2011-March 2022

Please look at the following table.? This shows where the 10 year treasury note has been month to month (MTM) from August 2011-March 2022.? I am using the ending date March 2022, as the rate hikes started.? Please note that even post March 2022, for a few rate hikes the 10 year treasury index was still in range of the time period of August 2011-March 2022.?

?Website reference below table.? I am writing about this again to highlight better what the 10 year treasury was trading at during these times and show that even with the assumptions of 150-200 bps spread "over the swap", IO rates were at 3%-4% range.? For certain sub markets depending on the time frame positive leverage and a positive interest rate constant was still possible.? Certain sub markets could be for example 5%, 6%, 7%, capitalization "cap" rates etc.? Therefore, underwriting a deal in terms of the historical sub market cap rate upon stabilization was different during those times comparing to now.? ?Neutral or negative leverage means less net cash flow after debt service and means a better value add plan is needed or an aggressive upside to make the deal pencil out for various investment metrics.

?A FYI as many CRE sponsors especially newer syndicators are proving they need a history lesson and are not thinking as critically/insightful as they should.

?Mar 1, 2022? 2.13% Feb 1, 2022? 1.93% Jan 1, 2022? 1.76% Dec 1, 2021? 1.47% Nov 1, 2021? 1.56% Oct 1, 2021? 1.58% Sep 1, 2021? 1.37% Aug 1, 2021? 1.28% Jul 1, 2021? 1.32% Jun 1, 2021? 1.52% May 1, 2021? 1.62% Apr 1, 2021? 1.63% Mar 1, 2021? 1.61% Feb 1, 2021? 1.26% Jan 1, 2021? 1.08% Dec 1, 2020? 0.93% Nov 1, 2020? 0.87% Oct 1, 2020? 0.79% Sep 1, 2020? 0.68% Aug 1, 2020? 0.65% Jul 1, 2020? 0.62% Jun 1, 2020? 0.73% May 1, 2020? 0.67% Apr 1, 2020? 0.66% Mar 1, 2020? 0.87% Feb 1, 2020? 1.50% Jan 1, 2020? 1.76% Dec 1, 2019? 1.86% Nov 1, 2019? 1.81% Oct 1, 2019? 1.71% Sep 1, 2019? 1.70% Aug 1, 2019? 1.63% Jul 1, 2019? 2.06% Jun 1, 2019? 2.07% May 1, 2019? 2.39% Apr 1, 2019? 2.53% Mar 1, 2019? 2.57% Feb 1, 2019? 2.68% Jan 1, 2019? 2.71% Dec 1, 2018? 2.83% Nov 1, 2018? 3.12% Oct 1, 2018? 3.15% Sep 1, 2018? 3.00% Aug 1, 2018? 2.89% Jul 1, 2018? 2.89% Jun 1, 2018? 2.91% May 1, 2018? 2.98% Apr 1, 2018? 2.87% Mar 1, 2018? 2.84% Feb 1, 2018? 2.86% Jan 1, 2018? 2.58% Dec 1, 2017? 2.40% Nov 1, 2017? 2.35% Oct 1, 2017? 2.36% Sep 1, 2017? 2.20% Aug 1, 2017? 2.21% Jul 1, 2017? 2.32% Jun 1, 2017? 2.19% May 1, 2017? 2.30% Apr 1, 2017? 2.30% Mar 1, 2017? 2.48% Feb 1, 2017? 2.42% Jan 1, 2017? 2.43% Dec 1, 2016? 2.49% Nov 1, 2016? 2.14% Oct 1, 2016? 1.76% Sep 1, 2016? 1.63% Aug 1, 2016? 1.56% Jul 1, 2016? 1.50% Jun 1, 2016? 1.64% May 1, 2016? 1.81% Apr 1, 2016? 1.81% Mar 1, 2016? 1.89% Feb 1, 2016? 1.78% Jan 1, 2016? 2.09% Dec 1, 2015? 2.24% Nov 1, 2015? 2.26% Oct 1, 2015? 2.07% Sep 1, 2015? 2.17% Aug 1, 2015? 2.17% Jul 1, 2015? 2.32% Jun 1, 2015? 2.36% May 1, 2015? 2.20% Apr 1, 2015? 1.93% Mar 1, 2015? 2.04% Feb 1, 2015? 1.98% Jan 1, 2015? 1.88% Dec 1, 2014? 2.21% Nov 1, 2014? 2.33% Oct 1, 2014? 2.30% Sep 1, 2014? 2.53% Aug 1, 2014? 2.42% Jul 1, 2014? 2.54% Jun 1, 2014? 2.60% May 1, 2014? 2.56% Apr 1, 2014? 2.71% Mar 1, 2014? 2.72% Feb 1, 2014? 2.71% Jan 1, 2014? 2.86% Dec 1, 2013? 2.90% Nov 1, 2013? 2.72% Oct 1, 2013? 2.62% Sep 1, 2013? 2.81% Aug 1, 2013? 2.74% Jul 1, 2013? 2.58% Jun 1, 2013? 2.30% May 1, 2013? 1.93% Apr 1, 2013? 1.76% Mar 1, 2013? 1.96% Feb 1, 2013? 1.98% Jan 1, 2013? 1.91% Dec 1, 2012? 1.72% Nov 1, 2012? 1.65% Oct 1, 2012? 1.75% Sep 1, 2012? 1.72% Aug 1, 2012? 1.68% Jul 1, 2012? 1.53% Jun 1, 2012? 1.62% May 1, 2012? 1.80% Apr 1, 2012? 2.05% Mar 1, 2012? 2.17% Feb 1, 2012? 1.97% Jan 1, 2012? 1.97% Dec 1, 2011? 1.98% Nov 1, 2011? 2.01%Oct 1, 2011? 2.15%Sep 1, 2011? 1.98%Aug 1, 2011? 2.30%

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https://www.multpl.com/10-year-treasury-rate/table/by-month